EDR by

GAS PRICES

mm1018524_ — 2023-11-28 18:05:11 UTC

Causes of Inflation

mm1018524_ — 2023-11-28 18:07:15 UTC

The start of rising gas prices, started when Russia invaded Ukraine. The U.S. banned imports from Russian oil since then, which U.S. had to look for oil somewhere else, causing prices to go up.

Effects of Inflation

mm1018524_ — 2023-11-28 18:09:06 UTC

Since gas prices are rising, it is taking a toll on some businesses. A lot of businesses that are affected are airlines, truck drivers, lawn care companies, etc. Mostly businesses that involve travel, which uses gas. When the prices raise for gas, companies have to raise their prices, which can upset the costumers.

Correlation

mm1018524_ — 2023-11-28 18:09:51 UTC

Gas prices and inflation normally go together, however this is a one way relationship. When inflation rises so do gas prices, but if gas prices rises, inflation does not always follow it.

Textual Evidence 1

mm1018524_ — 2023-12-05 18:14:55 UTC

"Gas prices rose late last year amid supply chain problems and increased demand as the economy recovered following the COVID-19

pandemic, but prices have spiked ever higher since Russia’s Feb. 24 invasion of Ukraine. The U.S. has banned imports of Russian

oil and other countries are seeking alternatives to Russian energy, driving prices up."

Textual Evidence 2

mm1018524_ — 2023-12-05 18:15:12 UTC

"The average price for a gallon of gas jumped 13 percent this week, according to AAA. Overall gasoline prices are up

38 percent from a year ago, according to the Labor Department’s latest inflation figures." The article further talks about the challenges businesses are going to have to face. Almost doubling the price that these businesses have to pay for gas. Why is this happened? "Russia’s invasion of Ukraine and the surge in energy prices appears to be making the country’s inflation problems much worse." After Russia invaded Ukraine President Joe Biden thought this would be the best solution, however, it is destroying American Businesses.

Textual Evidence 1

js1019272 — 2023-12-05 18:18:07 UTC

May 8th 2022, Joe Biden signs a bill to ban the imports of Russian oil, liquefied natural gas, and coal to the United States. This causes the price of these resources to sky rocket, gas prices going up 31.23 percent. From an average of $3.01 to $3.95. Obviously this is going to effect the everyday person trying to fill up their car, but this is also effecting all the businesses that use gas. Law mowing companies and jet sky companies run on only gas, this means they have to charge their customers more to make up for the extra money they have to spend on gas.

Textual Evidence 1

mm1018524_ — 2023-12-07 17:45:48 UTC

"Airlines, for example, typically spend about one-third of their expenses on fuel, which means any spike in prices has a discernible impact. As a result, some international carriers are already tacking on fuel surcharges to ticket prices. Alaska Air

Group is cutting back on up to 5 percent of its flights in the first half of the year as a result of “the sharp rise in fuel

costs,” it said in a corporate filing this week."

Textual Evidence 2

mm1018524_ — 2023-12-07 17:47:33 UTC

“Customers really don’t want to hear it, but fuel prices are going through the roof so we’re having to charge more,”

said John Migliorini, vice president of Lakeville Trucking in Rochester, N.Y., where diesel costs have nearly doubled

to about $400,000 a month. “What choice do we have? I’ve never seen prices jump this high, this fast.”

Textual Evidence 2

js1019272 — 2023-12-07 18:06:27 UTC

Gas stations are not too quick to lower their prices after getting cheaper gas, "Gasoline stations still have to recover the cost of the higher priced product in the underground storage tank before they can lower price. Competition will promote lower prices." Now other gas stations can lower their price when they sell the more expensive gasoline, however, this is going to make the station that still has the expensive gasoline to loss potential profits because their prices are so high.